‘A cycle I wish would break.' Edelweiss MF CEO Radhika Gupta reveals why companies 'brutally' opt for mass sacking

After pandemic hit pause on our daily lives following the Covid-19 outbreak in 2019, many lost their jobs during the lockdowns. As businesses were severely affected, several companies went through mass lay-offs.

Due to this sudden shift, we have been witnessing the firing-hiring-firing trend. Radhika Gupta, the chief executive officer of Edelweiss Asset Management Limited, addressed this issue by pointing out what companies do: Over-hiring.

In her latest tweet, the business executive expressed her wish to break this cycle, saying that sustainable growth and realistic expectations would do a lot of good.


The 39-year-old said that companies over-hire people in a mad growth rush and fire quickly when markets turn.

"A cycle I wish would break: over-hiring people in bull markets in a mad growth rush, and firing equally quickly and brutally when markets turn because costs suddenly matter," Gupta tweeted.
Several people agreed with Gupta and shared their own thoughts on the matter.

One Twitter user pointed out that firing people is acceptance of failure by the management.

"Firing people is acceptance of failure by management. But the business is designed in such a way that they will always have an excuse rather than accepting their failure," the person replied to Gupta's tweet.
While another person mentioned start-ups. "So true in several other ventures- several ambitious start-ups for example! Sustainable growth, tempered with realism!," the person tweeted.
In the last two years, big companies such as Better.com, Netflix, Meesho and Unacademy have gone through mass lay-off many in their respective organisation.

In December 2021, Better.com was all over the news when a video of the company's CEO Vishal Garg fired nearly 900 employees on a Zoom call. After a lot of drama, it was reported that the company later went through for sets of firing were around 3,000 employees were sacked this year itself.